JUDGMENT - J.G. CHITRE, J.:---Heard the vehement arguments of the Counsel for the parties with reference to the annexures on record. In Criminal Application No. 1918 of 2002 the Directors of a commercial concerned styled as "M/s. Free India Concepts" are now moving this applications for an independent cause for getting the directions in the nature of anticipatory bail different from the previous one which was hotch-potch of prayers. 2. The applicants are Directors of "M/s. Free India Concepts" having its head office at Babu Bhawan, 1st floor, Bala Sheth Madhukar Road, Opp. Elphinstone Road Railway Station, Elphinstone, Mumbai . They opened an office at Ichalkaranji near Gajanan Maharaj, Shegaon Temple initially. It seems to be their business by commercial activities to have the customers by way of a continuous chain for sale of their various articles which have been mentioned in the brochure annexed to the application. The scheme in short is that suppose a member of the public wants to become a customers of "M/s. Free India Concepts (hereinafter referred to as "Company" for convenience), he has to deposit Rs. 2000/- towards the part payment of the article which he may choose to purchase from the said company. In addition to that, he has to pay Rs. 500/- towards service charge. He would get a receipt in respect of payment of this sum of Rs. 2,500/- but would not get the article which he wants to purchase at that time because he has to follow further procedure of procuring two such customers for the company. This opens option for him of either to purchase the said article at such adjusted rate by adjustment of the commission which he would be getting by procuring those two customers or in the alternate he would be getting commission in the nature of cash. Those two customers brought by the initial customers would be also making the deposit of Rs. 2500/- and would be following the same scheme of procuring two more customers and the same would go on till the initial customer gets the article which he wants to purchase finally or would get his amount of commission in the nature of cash. 3. The employees of the said company used to give the demonstration of the scheme by exhibiting CD cassette and by addressing a informative lecture to prospective customers. 3. The employees of the said company used to give the demonstration of the scheme by exhibiting CD cassette and by addressing a informative lecture to prospective customers. One Arun Patil and Miss Bhojane were engaged in such activities when the complainant who lodged the complaint in Shahupuri Nagar Police Station named Yuvraj Babu Kamble visited the office of the company. He was explained the scheme by Arun Patil and Ms. Bhojane and was asked to join the said CD exhibition show as well as the informative address. By hearing this, the complainant who lodged the F.I.R. requested them to make him the member of the said scheme. He paid a sum of Rs. 2500/- and he got the receipt in respect of that. He was asked to bring two members. Mr. Yuvraj Babu Kamble went to his locality and searched for his members but could not get such members for 15 days. Thereafter he got some persons whom he brought to the shop of the company and the necessary information was shown to them by exhibition of the CD cassettee as well as by informative address of Arun Patil and Ms. Bhojane. Thereafter Yuvraj Babu Kamble could get two prospective customers whom he brought to the said office. They also paid the said sum of Rs. 2500/- each and receipts were passed in their favour. At that time Yuvraj Babu Kamble perhaps wanted to have the said amount in cash but he found the said article at that time but he was told to pay Rs. 570/- which was the amount payable by him after deducting the initial amount which was paid by him which was to the tune of Rs. 2000/- and the commission which accrued to him on account of the introduction of those two members. It seems that that hurt Yuvraj Babu Kamble and he thought he was cheated by the employees of the company and its Directors. Hence he went to the Shahupuri Police Station, Kolhapur and lodged the F.I.R. The said F.I.R. rolled the ball of investigation and investigation continued. It is still in progress. 4. The applicants and their employees-the employees of the company have been charged for committing offence punishable under the provisions of sections 3, 4 and 5 of the Price Chits and Money Circulation Scheme (Banning) Act, 1978 (for convenience "the Act"). It is still in progress. 4. The applicants and their employees-the employees of the company have been charged for committing offence punishable under the provisions of sections 3, 4 and 5 of the Price Chits and Money Circulation Scheme (Banning) Act, 1978 (for convenience "the Act"). They apprehend that they would be arrested in connection with the said F.I.R. and the allegations made against them and, therefore, they prayed in these applications for directions in the nature of anticipatory bail. 5. Shri Sakhare, Counsel appearing for the applicants, submitted that there is no element of cheating or presence of any ingredient of provisions of sections 3, 4 or 5 in the activities which are being transacted by the company, its Directors and employees. He demonstrated it by making a reference to the Brochure issued by the said company in which various articles have been mentioned which such a customer can get after introducing the members and making the continuity of chain of the scheme. The said brochure really mentions some articles which the person is entitled to get at reduced rate after introducing such members and making the chain of the customers continued for his benefit and for the benefit of the company. Shri Sakhare submitted that the said amount of Rs. 500/- has been received by the company, the applicants and the employees of the said company towards processing fee which they are entitled to get because that sum is to be used for the purposes of maintenance of the office and payment of salaries to the employees and towards the profit which the company is to earn by such commercial transactions. Therefore, Shri Sakhare submitted that the scheme contemplates real transactions of sale of articles and it is not a transaction of wagering or a transaction which is without exchange of consideration and exchange of articles. 6. Shri Sakhare pointed out the terms and conditions which are printed at the back of the said application which such prospective customer has to fill in at the time of getting the membership. He submitted that the said brochure shows the policy and procedure which is to be followed and the things which such customers are to get. 6. Shri Sakhare pointed out the terms and conditions which are printed at the back of the said application which such prospective customer has to fill in at the time of getting the membership. He submitted that the said brochure shows the policy and procedure which is to be followed and the things which such customers are to get. It is his submission that the said application by itself gives the exact idea to such prospective customer about the nature of the transaction which he has to transact after becoming a member of the company. Therefore, according to him, there is no fraud, deceit or cheating at all. He submitted that there is no element of circulation of money for making easy money and making easy gains as contemplated by provisions of section 2 of the Act indicated by sub-section (c). He submitted that the provisions of section 2(a) are also not attracted because there is no transaction which would attract the word "chit fund". 7. Shri Sakhare submitted that on account of the development of the society and the commerce as a whole, such schemes are normally followed as routine in Western countries and on account of the development of trade and commerce such concepts are coming to India and as they are new to the persons like Yuvraj Babu Kamble who get themselves troubled and the result is the present complaint. 8. Shri Sakhare relied on the judgment of the Supreme Court in the matter of the (State of West Bengal and others v. Swapan Kumar Guha and others)1, reported in A.I.R. 1982 S.C. 949. He specifically referred to paragraph No. 56, 62 and paragraph No. 72 and paragraphs thereafter which deal with the points which are connected with the present matter. He invited the attention of this Court to the majority opinion and the ratio of the said judgment wherein the Supreme Court held that a First Information Report which does not allege or disclose that the essential requirements of the penal provisions are prima facie satisfied, cannot form the foundation or constitute the starting point of a lawful investigation. He invited the attention of this Court to the majority opinion and the ratio of the said judgment wherein the Supreme Court held that a First Information Report which does not allege or disclose that the essential requirements of the penal provisions are prima facie satisfied, cannot form the foundation or constitute the starting point of a lawful investigation. Investigation can be quashed if no cognizable offence is disclosed by the F.I.R. It is surely not within the province of the police to investigate into a Report (F.I.R.) which does not disclose the commission of a cognizable offence and the Code does not impose upon them the duty of inquiry in such cases. 9. Shri Sakhare also invited the attention of this Court towards the majority view expressed by the ratio of this judgment which indicates that:- "Two conditions must be satisfied before a person can be held guilty of an offence under section 4 read with sections 3 and 2(c) of the Act. In the first place, it must be proved that he is promoting or conducting a scheme for the making of quick or easy money and secondly, the chance or opportunity of making quick or easy money must be shown to depend upon an event or contingency relative or applicable to the enrolment of members into that scheme. A transaction under which, one party deposits with the other or lends to that other a sum of money on promise of being paid interest at a rate higher than the agreed rate of interest cannot, without more, be a "money circulation scheme" within the meaning of section 2(c) of the Act, howsoever high the promised rate of interest may be in comparison with the agreed rate. It cannot be said that the lender, himself a victim of the machinations of the crafty promoter, is intended by the Act to be arraigned as an accused." 10. In that case, some features were prominently pointed out which were attracting the definition indicated by section 2(c). They were:- (1) Offering the higher rate of interest at the rate of 48% per annum to the members when the documents were showing that they were entitled to get only at the rate of 12% per annum. (2) Such money was to be paid on happening of uncertain events. They were:- (1) Offering the higher rate of interest at the rate of 48% per annum to the members when the documents were showing that they were entitled to get only at the rate of 12% per annum. (2) Such money was to be paid on happening of uncertain events. (3) There was a possibility of payment of such high rate of interest from the capital itself. (4) When the company promised to pay such high rate of interest to the members the company was not having sufficient funds to enable it to pay it. Referring to this, Shri Sakhare submitted that the present case is totally different wherein a member enrolled is surely to get an article which he wants to purchase immediately after he makes three members or more than three members and he is required to pay the deficit of the amount of the selling price of that article and the commission earned by him. Therefore, there is no speculation as such and there is no uncertainty of the happening of the event. Shri Sakhare submitted that no false promises have been given by the present company, its Directors and employees to any of the member of the Society and, therefore, the provisions of section 2(c) of the Act would not be attracted and, therefore, these applicants, their employees cannot be convicted if they are put to trial. 11. By making such submissions Shri Sakhare prayed for directions in the nature of anticipatory bail in favour of the applicants. He submitted that they are permanent residents of the places shown in the application. They are not hardened criminals and they are not likely to abscond. He submitted that they will attend the trial and will co-operative with the investigating machinery during the course of investigation. 12. Shri Konde Deshmukh while advancing the vehement argument submitted that the scheme which has been put forth by the applicants is for circulation of money which has been contemplated by provisions of section 2(c) of the Act. He submitted that the fact that the customer is required to bring two future customers and by procuring such customers he is to get commission is itself showing that he is earning easy money or quick money. He submitted that the fact that the customer is required to bring two future customers and by procuring such customers he is to get commission is itself showing that he is earning easy money or quick money. Shri Konde Deshmukh submitted that the investigation is yet to be completed and, therefore, if directions in the nature of anticipatory bail are granted in favour of the applicants it would cause serious prejudice to the investigation. 13. The apprehension of serious prejudice to the investigation has been repelled by Shri Sakhare by submitting that during such a long period the investigation did not progress and it cannot progress because there is no substance in the said complaint at all and no case has been made out as no offence has been committed by the applicants. 14. While deciding the applications for bail or directions in the nature of anticipatory bail, the Court has to keep following points in addition to others in view. (1) The nature of the offence alleged. (2) The strength of the material which has been collected by the Investigating Agency by the investigation done so far. (3) The possibility of the accused absconding. (4) The possibility of the accused remaining present for the trial or investigation. (5) Whether by grant of bail or direction in the nature of anticipatory bail the process of investigation would be hampered or put to jeopardy. (6) Whether by such relief granted the prosecution would be put in obstacles or prejudice for going to the trial. (7) The criminal antecedents, if any, of such applicants. (8) Larger interest of the society. 15. Section 2(a) of the Act provides the definition of "conventional chit" as it means a transaction whether called chit, chit fund, kuri or by any other name by or under which a person responsible for the conduct of the chit enters into an agreement with a specified number of persons that every one of them shall subscribe a certain sum of money (or certain quantity of grain instead) by way of periodical instalment for a definite period and that each such subscriber shall, in his turn, as determined by lot or by auction or by tender or in such other manner, as may be provided for in the chit agreement, be entitled to a prize amount. The explanation provided to it shows that in the said clause "prize amount" shall mean the amount, by whatever name called, arrived at by deducting from out of the total amount paid or payable at each instalment by all the subscribers. 16. Section 2(c) gives the definition of "money circulation scheme" as it means any scheme by whatever name called, for the making of quick or easy money, or for the receipt of any money or valuable thing as the consideration for a promise to pay money, on any event or contingency relative or applicable to the enrolment of members into the scheme, whether or not such money or thing is derived from the entrance money of the members of such scheme or periodical subscriptions; 17. In the present case, such prospective customer is required to choose an article which he would be purchasing and in that context he has to pay a sum of Rs. 2000/- as initial instalment. Therefore, he does not enter into an agreement prima facie for “quick” or “easy” money. Secondly, prima facie the money which has been accepted from such prospective customers is not a scheme derived from entrance money of the members of such scheme. Nor prima facie it is periodical subscriptions. The scheme shows that the option is open for that prospective customer to purchase an article which he desires to purchase by making good the deficit between the selling price of that article and the initial payment made by him and the commission accrued by introducing some future customers. The scheme prima facie shows, his role would come to an end after he purchases such an article or takes the amount of commission earned under the scheme. He does not remain as a member of the said scheme for future period. He stands prima facie eliminated. It cannot be called as "quick" or "easy" money earned because the complaint of Yuvraj Babu Kamble itself shows that he could not get even two customers which he was under the obligation to introduce, after he became the member of the said scheme by paying a sum of Rs. 2500/-. Now-a-days it is a very difficult job to catch, drag or fetch such customers or members. Experience tells that it is now-a-days difficult for even the insurance agents to do such exercise. Everybody is cautious and watchful before entering into such schemes. 2500/-. Now-a-days it is a very difficult job to catch, drag or fetch such customers or members. Experience tells that it is now-a-days difficult for even the insurance agents to do such exercise. Everybody is cautious and watchful before entering into such schemes. Of course, there are number of innocent persons present in the society. But as it has been depicted from the material on record, the applicant, prima facie, does not seem to be a person who should not be given the relief of directions in the nature of anticipatory bail. Now-a-days prospective customers do get puzzled, confused on account of increasing advertisements. They find it difficult to make decisions. But it cannot be avoided because it is now-a-days part of life. Competition amongst sellers has made presence of "Buyers market". Buyers have to select the proper product or scheme and he has to avoid his loss. He has to earn the benefits in the nature of discount, commission or offered luxuries and for that has to distinguish different schemes on merit. Buyer has to be cautious. He should always remember "Caviat emptor-Let Buyer beware". Every scheme is different on its texture. 18. There is no complaint from the prosecution that the applicants are hardened criminals. There is no complaint from the side of prosecution that they do not have a permanent abode. No fear is expressed that they would abscond if direction in the nature of anticipatory bail stands granted in their favour. Thus, by keeping in view the nature of the allegations made against the applicants, the nature of the offences alleged, the sentence which they may get after prosecution proves their guilt, after considering their antecedents and roots in the society, this Court comes to a conclusion that this is a fit case in which direction in the nature of anticipatory bail could be granted in favour of the applicants. However, for the purpose of protecting the interest of the prosecution, some conditions need to be imposed on them. 19. The applications stand allowed. The officers of the Shahupuri Police Station, Kolhapur are hereby directed that in the event of arrest of the applicants in respect of C.R. No. 21 of 2002 each of the applicants be released on bail on furnishing security to the extent of Rs. 10,000/- with one surety and P.R. bond to that extent. 19. The applications stand allowed. The officers of the Shahupuri Police Station, Kolhapur are hereby directed that in the event of arrest of the applicants in respect of C.R. No. 21 of 2002 each of the applicants be released on bail on furnishing security to the extent of Rs. 10,000/- with one surety and P.R. bond to that extent. The applicants shall not threaten, contact or induce any of the prosecution witnesses. The applicants shall make themselves available for the purposes of interrogation whenever called. The applicants shall not leave India without permission of this Court. They shall surrender their passports before the trial Court, if they are having any. They shall attend Shahupuri Police Station, Kolhapur once in a week on Sunday at any time between 9.30 to 10.30 a.m. till further orders. In such an event, the Police Officer should not detain them for more than one hour. 20. Parties to act on an ordinary copy of this judgment duly authenticated by the Private Secretary of this Court. Order accordingly. -----